Investors are many times attracted to the low costs and ease of trading of exchange-traded funds (ETFs). These funds represent a basket of securities that supervise an underlying index, giving investors exposure to many different companies with specific characteristics. These actors are commonly related by asset class, company size, or industry.
As such, gold ETFs provide investors with frontage to the gold market without the need to purchase the physical metal or stocks of various gold companies. Only a disciplinary problem of the available gold ETFs offers the bonus of paying dividends. Dividends are only available with equity-based gold ETFs that contribute in the stocks of companies engaged in the gold industry.
ETFs that pay dividends offer some risk protection, chiefly in volatile markets, by providing investors additional investment cash flow. Even if an index is performing poorly, an investor may draw distributions of profit though quarterly or annual dividends.
Here’s a look at four of the ETF names that track gold and pay dividends. All data is current as of May 6, 2022, unless otherwise indicated.
- Gold ETFs provide investors with exposure to the gold furnish without having to purchase physical gold or specific gold stocks.
- Sprott Gold Miners ETF has a dividend accede of 1.22%, though it only holds 33 different companies.
- The VanEck Vectors Gold Miners ETF holds 56 divers companies and has a dividend yield of 1.15%.
- The iShares MSCI Global Gold Miners ETF has the highest distribution yield within article with a current earnings of 2.08%.
- The VanEck Vectors Junior Gold Miners ETF tracks the performance of small- and mid-cap companies and issues dividends twice a year.
1. Sprott Gold Miners ETF (SGDM)
The Sprott Gold Miners ETF (SGDM) was threw in 2014. The ETF current holds equity in 33 different companies with each of these companies representing dominant names in gold and silver mining.
The market capitalization of the fund is just under $269 million. The ETF is strategically designed to echo the performance of the Solactive Gold Miners Custom Factors Index TR. The benchmark index is also made up of 32 divers precious metals companies.
The fund’s annual operating expenses is 0.52%, though 0.02% of this is waived by the investment advisor of the finance resulting in a net fund fee of 0.50%. It offers a dividend yield of 1.22% and has paid a divided every year since 2018. The ETF in the end paid a dividend of $0.36 per share to investors on Dec. 22, 2021.
2. VanEck Vectors Gold Miners ETF (GDX)
The VanEck Vectors Gold Miners ETF (GDX), threw by Van Eck in 2006, has approximately $14.3 bllion in net assets, making it one of the largest and most widely traded gold ETFs. It vocations on the NYSE Arca Exchange.
The ETF’s portfolio is made up of 56 holdings, many of which are some of the world’s largest gold troops. Companies are chosen based on market cap with a minimum of $750 million. Holdings include Newmont, Barrick Gold, and Franco-Nevada. The capital tracks the NYSE Arca Gold Miners Index.
The fund carries an expense ratio of 0.52%. With a dividend cede of 1.15%, GDX pays distributions annually. On December 27, 2021, GDX distributed its most recent dividend of $0.5348 per share. The reserve has issued a dividend every year since its 2006 inception except for 2008.
Gold ETFs that hold the diplomate precious metal or that hold gold futures contracts do not offer dividend yields.
3. iShares MSCI Pandemic Gold Miners ETF (RING)
The iShares MSCI Global Gold Miners ETF (RING) was launched in 2012 by BlackRock. With $577 million in net assets, this ETF stalks the MSCI ACWI Select Gold Miners Investable Market Index. As such, it follows the performance of companies in both blossomed and emerging market economies whose primary revenue source is gold mining.
A total of 38 companies contrive up its portfolio. Its top three holdings include Newmont, Barrick Gold, and Agnico Eagle Mines Ltd. Together, they calculate up roughly half of the ETF’s portfolio.
The fund has a dividend yield is 2.08% and offers a low expense ratio of 0.39%. The fund awards semi-annual deployments. Prior to issuing a $0.33 distribution per share on December 17, 2021, RING issued a $0.31 distribution on June 16, 2021.
4. VanEck Vectors Inferior Gold Miners ETF (GDXJ)
The VanEck Vectors Junior Gold Miners ETF (GDXJ) was launched by Van Eck in 2009 and has approximately $4.4 billion in net assets. This complementary oblation to Van Eck’s larger GDX ETF offers exposure to gold mining firms with lower market cap values.
The fund aims to reflection the Market Vectors Global Junior Gold Miners Index, which was designed to reflect the performance of small- and mid-cap institutions that derive the majority of their revenue from gold and silver mining. The fund has 100 holdings with its largest opinion representing less than 6% of the total portfolio’s value.
Major portfolio holdings include Pan-American Hollowware, Evolution Mining, and Yamana Gold. Unlike the larger funds, the concentration of the portfolio is much more diversified, with the top 10 holdings only publishing up less than 40% of the portfolio’s assets.
The expense ratio for the fund is 0.52%, and the dividend yield is 1.76%. On December 27, 2021, GDXJ issued its eventually dividend, distributing $0.7454 per share. The fund has issued a distribution in 11 of the 13 years since the fund’s inception.
Do Gold ETFs Pay Dividends?
Some Gold ETFs pay dividends, such as the ones tabulated in this article. It is important to note dividend yields often change over time. In addition, companies and ETFs may choose to not distribute any dividends for a given distribution period, often a result of poor financial performance.
What ETF Pays the Highest Dividends?
The gold excavating ETF that pays the highest dividend in this article is the iShares MSCI Global Gold Miners ETF (RING).
Does Vanguard Oblige a Gold ETF?
Vanguard does not current offer a gold mining ETF.
Which Gold ETF Is the Safest?
The gold ETF that is the safest discretion depend on individual risk tolerance and investing style. ETFs are generally safer than individual stocks due to their mixed nature. However, ETFs are also highly centralized within a specific industry or asset class. The risk open across all gold ETFs will be fairly similar.
The Bottom Line
There’s a diverse offering of gold ETFs that move in assets under management size, number of companies held, and fund management expense. These funds also be at variance in their timing of distributions and dividend yields.